Mixed feelings have trailed the Federal Government’s membership of the green bond revolution. While some of the experts praised the initiative, others frowned at it as they believe the development would heighten the nation’s debt profile.
The green bonds are bonds used to fund projects that benefit the environment or climate, such as clean energy projects. In the case of Nigeria,
the initiative is set to create electricity to rural areas, confront poverty, and also fight security
challenges.
The Director General, West African Institute for Financial and Economic Management, Prof. Akpan Ekpo, explained that the development would reduce the level of poverty in the rural areas across the nation, as they are expected to transform to mega cities, which would reduce the rate of migration of Nigerians to other developing and developed countries.
He said, “Citizens will be able to transport their goods because most of the upcoming businesses are
not growing owing to lack of power supply; but with this, people can make a
living, and the government can also extend the development to urban
areas.”
Ekpo added that the development would reduce rural unemployment and also about 80 per cent of Nigerians would have access to power supply, given the strong market uptake and that the green bond movement is an inspiring race on the African
continent.
However, others are of the opinion that the green bond movement will further throw the country into debt, as the government planned to issue N150bn in green
bonds.
A Petroleum Engineer and former presidential candidate of National Conscience Party, Mr. Martins Onovo, said the implication of the development would further deepen the nation’s debt
profile.
According to him, the country had already borrowed over N10 trillion to address several infrastructural
decay.
He said, “Going through analysis, there has been over N10 trillion, which the country has borrowed for developmental projects, but there has not been any major development. The implication of
the development is that, the country is further destroyed by debt, while there is no corresponding
growth.”
Onovo further lamented that if care is not taken, borrowing more funds would increase from N30 trillion to N50 trillion, “in a country where total revenue is about N5 trillion.”
“There has been enough of social and economic destruction from the government and it must be stopped at any cost,” he quipped.